If you are at the limit and have a baby, wish to adopt, invite your brother or SO to move in then adios. 

@Bruce LynnIt is not that uncommon these days for an institution to convey via quitclaim. 

A full description can found in the RCW itself and the subsequent Washington State Supreme Court Opinion on the Washington State Legislature website and linked below.Attorneys tell us "the penalty for engaging in a "pattern" of equity skimming that is set forth in the Distressed Property Conveyances Act is found in RCW 9.94A, as a Class B Felony, Level II offense", which can include confinement in a state correctional institution, fine or both.

So what would be a good real estate strategy to adopt during this supposed impending recession?...

There is still opportunity out here but a lot of it is going to be reserved for major developers and institutional investors. 

I am thinking developers/operators and some funds/institutional money will be big players in these zones, although if smaller investors can find big enough value add opportunities there could be the potential for some big long term savings.Interestingly enough it appears that the Mall of America is smack dab in the middle of one of the OZ's.

There are institutions that will lend to you.I think we need more information than you are giving.

I was a little worried that if I had a HELOC for the down payment then the banks or financial institutions would look at it as a loan on top of a loan.

Once you pull MLS data you will see that as well. 5th ward -- is a step forward where you can still buy raw land  and build and sell with early adopters who wants to be close to downtown ( a bit higher price compare to acre homes and without govt assistance) .

But my loathing for institutions like Deutschbank, BNP, Société Générale, Credit Suisse...that's of a different order, because I'm Greek-American.